Texas Natural Gas Vehicle Grant Program (TNGVGP)

The TNGVGP provides grants to encourage owners and operators of heavy- or medium-duty motor vehicles to repower their vehicles with a natural gas engine or replace them with natural gas vehicles. Grant applicants must go through a Participating Dealer under contract with the TCEQ.

A Program of the Texas Emissions Reduction Plan (TERP)

The latest application period has ended. Applications may no longer be submitted for funding consideration. Grant documents are provided for reference only.

Original Equipment Manufacturers (OEMs)

Reports and Information

How Do I Know if I Am Eligible for a Grant?

This section lists general information about eligible applicants, eligible counties, and the types of projects that may be eligible for grant funding. For complete information on the types of projects and expenses that may be eligible for grant funding, refer to the latest Request for Grant Applications (RFGA), or contact a Participating Dealer for more information.

Eligible Applicants:

Eligible applicants include those that own, lease, or commercially finance a heavy-duty or medium-duty vehicle that is operated in Texas.

Eligible applicants include individuals, corporations, organizations, governments or governmental subdivisions or agencies, school districts, business trusts, partnerships, associations, or any other legal entity.

Vehicles eligible for replacement or repower:

Applications may be submitted (through a participating dealer only) to replace existing diesel or gasoline vehicles with natural gas vehicles or to repower the engines of existing diesel or gasoline vehicles with natural gas engines.

Vehicles eligible for replacement or repower must have a Gross Vehicle Weight Rating (GVWR) greater than 8,500 lbs.

Vehicles eligible for replacement or repower must be in good operating condition with at least two years of remaining useful life.

For at least the two years immediately preceding the date of application, vehicles eligible for replacement or repower must have been:

owned, leased, or commercially financed by the grant applicant;

continually registered in Texas; and

operated by the grant applicant at least 75% of annual use (miles) in Texas.

Vehicles eligible for purchase (Replacement):

Vehicles eligible for purchase must be of the same category, description, and weight range or classification as the vehicle being replaced.

Vehicles eligible for purchase must be new and be powered by an engine certified by the EPA to the applicable federal emissions standard.

Vehicles eligible for purchase must be powered by an engine receiving 75% or more of its power from compressed or liquefied natural gas.

Vehicles eligible for purchase must be powered by an engine certified by the EPA to emit at least 25% less nitrogen oxides (NOx) than the vehicle being replaced.

Engines Eligible for Purchase (Repower):

Engines eligible for purchase must be powered by an engine receiving 75% or more of its power from compressed or liquefied natural gas.

Engines eligible for purchase must be certified by the EPA to the applicable federal emissions standard.

Engines eligible for purchase must be certified by the EPA to emit at least 25% less NOx than the vehicle being replaced.

Operation Requirements for Grant Funded Vehicles

Vehicles funded under the TNGVGP Program are intended to reduce emissions of NOx while promoting the use of natural gas in Texas. Vehicles funded under the TNGVGP must be operated by the grantee not less than 75% of the time in one or more of the eligible counties identified in the RFGA.